Key Contributions of India’s Space Sector

Source- This post on Key Contributions of India’s Space Sector published in the “Space sector contributed ₹20,000 crore to India’s GDP over the last decade” published in “The Hindu” on 24th August 2024.

Why in News?

Recently, The Indian Space Research Organisation (ISRO) initiated a study to evaluate the socio-economic impact of the space sector from 2014-2023.

Key Contributions of India’s Space Sector

1. GDP Growth: India’s space sector has directly contributed ₹20,000 crore ($24 billion) to the country’s GDP over the last 10 years.

2. Multiplier effect on Economy: For every dollar generated by the space sector, there is a multiplier effect of $2.54 on the Indian economy.

3. Job creation: The sector has directly supported 96,000 jobs across public and private sectors.

4. India’s space sector workforce is reported to be 2.5 times more productive than the broader industrial workforce.

5. Investment and Economic Impact:  India has invested $13 billion in its space sector over the last decade, making it the 8th largest space economy globally in terms of funding.

6. Sector Growth: As of 2023, the space sector’s revenues have grown to $6.3 billion, comprising about 1.5% of the global space market. The sector now includes 700 companies, of which 200 are startups.

7. Industries supported by the Space Sector: Telecommunications receives 25% support from space sector activities. Information Technology gains 10% support, and administrative Services get supported by 7% from space-related activities.

8. Strategic Importance: The space sector has contributed significantly to India’s national prestige, sovereignty, and international standing. The shift towards commercial space activities is becoming a priority.

9. Challenges:  Regulatory reforms have yet to fully impact the sector, and limited venture capital access restricts funding for space technology startups.

UPSC Syllabus: Science and technology